Articles Tagged with Department of Justice

Stoltmann Law Offices, a Chicago-based investor rights and securities law firm, has been representing investors in cases against brokerage firms that sold the private placement limited partnership offerings in several GPB Funds, including:

  • GPB Automotive Fund
  • GPB Holdings Fund II

AdobeStock_90383187-1-300x194Regulators have accused Yasuna Murakami and Avi Chiat, and their companies that the two managed, MC2 Capital Management and MC2 Canada Capital Management, of defrauding more than 50 investors by raising more than $15 million and then misappropriating funds in a ponzi-like fashion. According to the Securities and Exchange Commission (SEC), Murakami and Chiat allegedly defrauded more than 50 investors in three hedge funds run through their businesses. The hedge funds are MC2 Capital Partners LLC, MC2 Capital Value Partners and the MC2 Capital Canadian Opportunities Fund LLC. Allegedly, Murakami and Chiat lied to investors about the funds’ performance, falsified account statements, falsified tax documents, falsified performance letters and provided misleading communications to investors. They allegedly continually misled investors into believing they had invested in legitimate and profitable ventures, when, in reality, they engaged in unprofitable trading that lost more than 70% of the money raised for their first hedge fund in less than two years. The SEC further alleged that Murakami stole more than $8 million fro investors for almost a decade, and that he used $1.3 million of investor funds to make ponzi-like payments to earlier investors. He was arrested and accused of misappropriating millions of dollars from investors and engaging in a ponzi-like scheme by the Department of Justice. If you would like more information on how you can recover yours losses with Murakami and Chiat, and their companies, please call us today. We may be able to help you recover your losses on a contingency fee basis.

Stoltmann Law Offices is interested in speaking to those investors who may have invested in Platinum Partners LP and its flagship hedge funds, the Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund. These funds may have defrauded investors. We are investigating whether Platinum Partners paid investors who redeemed their hedge fund positions before June 2016 with money gained from newly incoming investors. This may have been a ponzi scheme. Platinum may have misstated the value of its investments, for which there was no public market price, and whether Platinum executives, including Murry Huberfeld, Mark Nordlicht, and others, may have assisted in any wrongdoing that caused harm to Platinum investors. Platinum Partners announced its liquidation of its two hedge funds in a July 20, 2016 letter to investors. The fund also suspended any redemption by investors. The Securities and Exchange Commission (SEC) and the Department of Justice are both investigating Platinum Partners for bribery and fraud. The Federal Bureau of Investigation raided Platinum Partners offices and Huberfeld was arrested for bribing union officials to invest in the fund.

The Securities and Exchange Commission (SEC) announced yesterday that State Street Bank and Trust Company has agreed to pay $382.4 million in a global settlement for misleading mutual funds and other custody clients by applying hidden markups to foreign currency exchange trades. The SEC found that State Street realized substantial revenues by misleading custody clients about Indirect FX (foreign currency exchange trading), telling some clients that it guaranteed the most competitive rates available. State Street instead set prices largely driven by predetermined, uniform markups and made no effort to obtain the best possible prices for these clients. State Street agreed to pay $167.4 million in disgorgement and penalties to the SEC, a $155 million penalty to the Department of Justice and at least $60 million to ERISA plan clients in an agreement with the Department of Labor.

The SEC will issue its order instituting the settled administrative proceeding only after a federal court approves State Street’s proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its price of foreign currency exchange trades. State Street agreed to admit certain findings in the SEC’s order. The SEC’s Division of Enforcement Director, Andrew J. Ceresney stated: “State Street misled custody clients about how it priced their trades and tucked its hidden markups into a corner where they were unlikely to notice. Financial institutions cannot mislead the customers about their trading costs.” State Street will be required to pay $75 million in disgorgement plus $17.4 million in interest to harmed clients as well as a $75 million penalty.

JSG Capital Investments, a San Francisco hedge fund, has been accused of defrauding investors out of millions of dollars, with its CEO and a colleague having spent the money at strip clubs, casinos and sporting events. The U.S. Securities and Exchange Commission claims JSG Capital took close to $9.3 million in a ponzi scheme. The men reportedly sold fake pre-IPO shares of Uber, Airbnb and Alibaba, before transferring the money to their own personal accounts. Jason Gill, the CEO and founder, along with Javier Carlos Rios, allegedly defrauded 200 investors out of their money, taking new money and paying it to old investors. They used companies such as Airbnb, and Uber Technologies to entice investors, promising them that they would invest their money this way. Both men have been charged with conspiracy to commit wire fraud and wire fraud, according to the Department of Justice. Of the $9.3 million they are accused of raising, they are said to have stolen in excess of $5.5 million. Gill and Rios allegedly transferred less than 1% of investor funds to JSG Entity brokerage accounts and no pre-IPO company shares were ever purchased.

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